We experienced a problem at our church when the pastor would not return the checkbook to the treasurer and started writing checks on his own without anyone else co-signing. Two signers on the bank account closed the accounts and received two cashier’s checks worth approximately $50,000. They placed the cashier's check in a safe deposit box and contacted the state bishop.
The state bishop wanted them to turn in the funds to him. The two signers on the account gave the checks to the bishop for safekeeping until the situation was resolved. The bishop took the funds and deposited them in an unknown account. The two signers never signed over these cashier’s checks to him. The bishop was not a signer on the church accounts. Is this considered fraud?
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As troubling as the information you have given us may be, there are too many unknowns for us to provide you with any useful guidance other than this: someone should contact an attorney familiar with your state's laws and with experience dealing with delicate matters like this. You may encounter a good deal of reluctance on the part of many attorneys to get involved in a case involving a religious organization.
While there may be some bank-related issues in the scenario you have painted, your real questions -- about the propriety of the actions of the pastor and the bishop -- needs to be taken up with an attorney. Hopefully, your church organization has a governing body responsible for protecting the church's funds and other property. If so, that body should assume the responsibility to engage an attorney to help them sort these matters out.
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As troubling as the information you have given us may be, there are too many unknowns for us to provide you with any useful guidance other than this: someone should contact an attorney familiar with your state's laws and with experience dealing with delicate matters like this. You may encounter a good deal of reluctance on the part of many attorneys to get involved in a case involving a religious organization.